All Forum Posts by: Sam Erickson

I think its worth getting your licence if you can go straight to broker and work on your own and not have to split your commissions.  In Wisconsin its not longer an option and the state requires you to work with a broker for a certain amount of time.

Here is my breakdown of annual cost in WI:

E&O insurance: $500 (I only broker my own deals any only buying and selling 4-6 properties a year. This cost will increase with the quantity and price range of deals you broker)

MLS Access: $720

Dues (Local, State, & National): $700

State Filling Fee: $25 (When your a broker you will need to create some sort of business entity as well. WI has an annual filing fee.)

These are the cost once you have your brokers license. In WI I think the cost to take the Agent and Broker classes where ~$400 each. Then ~$75 each to take the test.

Your also going to have continuing education cost. WI requirement is every 2 years you have to take continue ed classes. What classes and where you take the classes is going to effect the cost.

Once your up and running I have found I need to buy 1 property ($100K+) a year and the licence pays for itself. Keep in mind these cost above are brokers cost I never acted with my agent I went straight to broker.

I think that would only be true if they have executed a listing contract with the seller.  If the broker has done that I assume they have already determined what avenue is more profitable and decided to go forward with the listing.  If I broker finds a property and presents himself as a buyer (wholesaler) there is no fiduciary responsibility.

Another UG native! I'm born and raised in Union Grove. My family owns the Landscape Supply Yard on C & 45, I now work in Milwaukee doing REI. I do make it back to the Grove on weekends sometimes though to help out the family business.

My first thought with your plan is how are you going to protect yourself? You give the flipper $10,000 in concrete work, but what if the project goes south else where and he doesn't make any money.  You would make nothing for carrying the cost of the concrete work.   Or worse he loses money but still owes you $10K.  Now your just trying to get paid for the work done months ago. Not a position I would want to be in.

Deals have been a little harder to find, I think its mostly due to the increase in sales numbers Milwaukee has been seeing, the summer has been crazy especially when you get out to suburbs of Milwaukee.

That being said you can still find good deals with solid numbers, even more so if you willing/able to give a little TLC to a property before renting.

I agree with Dawn winter months are good months to buy. Things slow down and the properties that are listed are more likely to be in a must sell situation.

Hey @Lyn Bradley

Welcome to BP, you've come to the right place for info on Milwaukee!  There's a lot of people here in Milwaukee, as well as lot that have invested remotely like your trying to do.  

Best zip codes are going to be dependent on budget, feel free to PM and I'd be happy to discuss further.

Good luck in your journey!

Sam

Hope it's useful 

So I have pulled so many files from the FilePlace I thought it was time I gave back. 

At the link below you can find my version of a commercial (strip mall) rent roll.  You should only need to fill in the highlighted cells, however I left them all unlocked so you can see my formulas and can tweak them if you need to.

I'm always welcome to feedback, if you think there is info I missed, miscalculated, or a way to make it clearer, let me know.

http://www.biggerpockets.com/files/user/ericksonss10/file/commercial-rent-roll

I hope it helps someone out!

 Heads up, nothing at that website. Domain is currently listed for sale.

I'm pretty sure @jscott is on their board.  They also just got hooked up with houses flipping spreadsheets.com, the owner of which is also here on BP.

They seem to be pretty well connected with BP I'm sure some here has done a deal with them.

Sounds like you can't do it without him and he can't do it without you.  50/50 split of profits?

From your position I think I would be happy with 50% of he profits. Since he is also investing capital but also his time doing and managing the project I would argue that he has more invested then yourself.

Also don't get caught up on the ROI% and % profits, I feel they are one in the same. Your ROI is going to be the profits from the flip. If your looking to get a percentage return on your funds(like a bank does) and also get a split of the profits, sounds like your looking to double dip.